IDC Forecasts Online Advertising in Asia/Pacific Will Exceed US$1 Billion by 2004

FRAMINGHAM, MA – May 31, 2000 – Online advertising in Asia/Pacific (excluding Japan) is gaining momentum and is expected to exceed US$1 billion by 2004, according to a new report released today by IDC. IDC found that companies are increasingly beginning to view the Internet as a viable means to reach new audiences and advertise more effectively.

"As it stands now, companies in Asia are taking a wait-and-see approach to advertising online," said Matthew McGarvey, Internet analyst for IDC Asia/Pacific. "However, as the Internet becomes more pervasive, companies are recognizing the tremendous amount of potential that advertising online offers."

The report found that online advertising in Asia/Pacific (excluding Japan) accounted for less than 0.5% of total advertising revenue in the region during 1999. IDC forecasts Asian online advertising to generate US$1.15 billion in revenue in 2004 and grow at a 76% compound annual growth rate (CAGR) from US$67 million in 1999.

"Advertising agencies, ad networks, and portals will need to focus on educating the general public on the effectiveness of online advertising and the possibilities that it offers," McGarvey said. Much of the growth in online advertising in Asia/Pacific will occur between 2002 and 2004. "Currently, IT companies, telecommunications providers, financial institutions, and dot-coms are the leading advertisers online."

The report found that over the next four years, online advertising in all Asia/Pacific countries will experience bullish growth. Market competition is also expected to grow increasingly fierce and fragmented. The majority of regional Internet content providers are learning they cannot survive on advertisement revenue alone and will have to seek alternative forms of revenue. To fill this void, online advertising networks and traditional advertising agencies will need to focus on working past the standard banner advertisement and create more effective forms of advertisement.

IDC's recently published report, Online Advertising in Asia/Pacific (IDC #AP4005G), analyzes the opportunity for online advertising in Asia. It discusses the Internet advertising market in Asia by country and forecasts market growth up to 2004. Additionally, the report discusses online advertising specifically in Korea, Australia, Singapore, Hong Kong, Thailand, Malaysia, China, and Taiwan. The report concludes with recommendations for companies moving into online advertising in the region.

To purchase the report, please contact Cheryl Toffel at 1-800-343-4952 extension 4389. For more information on IDC Asia/Pacific's research offerings, please contact Beth Freedman or Lisa Bloom at 508-872-8200.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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